Modeling and Identifying Hierarchy of the Effective Measures of the Earning Management on the Prediction of the Bankruptcy

نویسندگان [English]

Mohammad Namazi1؛ Zohre Hajiha2؛ Hasan Chenaribokat3

1Shiraz University

2Islamic Azad University, Tehran Branch of the East

3Islamic Azad University, Tehran Branch of the East

چکیده [English]

The main aim of this study is modeling and determining hierarchy of the criteria of real earning management on the prediction of the bankruptcy of the companies listed in Tehran Stock Exchange. The required data was collected from financial statements of 81 companies, during 1386-1396. In this study real earnings management model developed by Dechow et al. (1998) similar to those in Roychowdhury (2006), and the risk of a bankruptcy Altman's criteria (1983) were used. The analysis was attempted via multivariate regression of pooled data algorithm. The results showed the relationship among the flow of abnormal operating cash costs, discretionary abnormal production costs, discretionary abnormal costs and probability of bankruptcy occurrence had positive significant, negative significant and non-significant effect, respectively. In addition, increasing (decreasing) of flow of abnormal operating cash costs resulted in increasing (decreasing) probability of the bankruptcy occurrence. Increasing (decreasing) of discretionary abnormal production costs led to decreasing (increasing) probability of the bankruptcy occurrence